Stock-trading app Robinhood gave a bleak revenue forecast for the first quarter of 2022 on Thursday as its latest earnings report showed a decline in active users.
Shares of Robinhood rose 9.7% on Friday after losing more than 14% earlier in the day.
The newly public brokerage anticipates first-quarter revenue of less than $340 million, down 35% compared with 2021. Wall Street’s consensus estimate was for $448.2 million in revenue for Q1, according to FactSet.
Monthly active users fell to 17.3 million last quarter from 18.9 million in the third quarter. This number was also below estimates of 19.8 million, according to FactSet.
Meanwhile, net cumulative funded accounts totaled 22.7 million…